JPMorgan to launch its neobank in Germany
JP Morgan Chase’s CEO, Jamie Dimon, has confirmed that the company’s online bank offering, Chase, is gearing up for expansion into Germany and the broader European region. While there had been previous speculation about this move, Dimon finally revealed the plans in an interview with the German newspaper Handelsblatt.
Chase, which made its European debut in the UK in September 2021, is now set to venture into the German market and other European countries. The CEO expressed the bank’s ambitious plans for its arrival in the region.
As of now, an exact launch date for Chase’s expansion into Germany has not been specified. Last September, Reuters reported that JP Morgan was actively seeking a ‘people project lead’ and ‘financial crime compliance officer’ in Germany, both roles linked to the upcoming consumer banking operation.
While earlier reports hinted at a potential launch in late 2024 or early 2025, Dimon’s recent comments did not provide a specific timeline for the expansion.
JPMorgan Chase, the biggest US bank by total assets, launched its City’s digital-only bank two years ago, which offers a range of savings and loan products under its ‘Chase’ brand in the UK. The digital bank is headquartered at Canary Wharf, London, and it has already created 500 jobs with more hires planned as it grows.
In its inaugural year of operation, JPMorgan’s UK digital retail bank has achieved impressive milestones, signing up a remarkable 1 million customers and amassing over $10 billion in deposits. Chase UK clients hold an average of £27,000 ($29,084) in their Saver account. Additionally, the digital lender processed more than 92 million card and payment transactions since its launch.
The Wall Street stalwart said it rolls out the millennial-geared service to onboard “millions of customers over time”, before expanding into other countries in Europe and Latin America.
Despite its rapid growth, the bank is taking a patient approach to profitability. Rather than rushing to reach a profitable state, JPMorgan seems focused on building a solid foundation and establishing a loyal customer base.
The Chase-branded neobank signed up Amazon Web Services and 10x Future Technologies to provide them with cloud and digital banking infrastructure.
The launch spurred a shakeup in competition and prices among incumbent lenders, including with its rival Goldman Sachs that launched its retail consumer bank, Marcus in the UK in 2018.